It is always surprising when well-known brands or companies announce that they are filing for bankruptcy protection and are on the verge of being liquidated entirely. For many companies, the thought of shuttering their doors despite a wildly successful run at some point, is met with feelings of disappointment and loss. While an organization in Virginia may have been coasting ahead of the competition in the past, sudden changes in the economy or consumer interest, poor financial decisions and even lackluster product development or advertising can create detrimental problems.
Recently, another once-giant retailer, Bon-Ton Stores Inc. has run into problems and is seeking bankruptcy protection. The Milwaukee and York, Pennsylvania-based company has highlighted slacking sales and increasing debt as reasons for the pending closure of all stores. The possible liquidation could have a significant effect on the economy, particularly in Milwaukee where multiple headquarters closing would result in the loss of over 2,000 jobs. Currently, an auction date has been scheduled to seek out a going-buyer whose presence may allow the retail giant to keep its doors open. It has also been heard that some shopping mall owners have considered purchasing the company as well.
When a company is facing an uphill battle with looming bankruptcy litigation, they may benefit from the direction of an experienced attorney. This decision may allow them to focus their efforts on recovery while a legal professional takes the reigns in organizing data and creating a strong legal case.
Source: Milwaukee Business Journal, "Bon-Ton auction pushed back a day," Melanie Lawder, Apr. 9, 2018